MUMBAI, MAR 10: As part of the global merger of AgrEvo and Rhone-Poulenc, two of the country's large crop protection companies, Aventis Cropscience (formerly AgrEvo India Limited) and Rhone-Poulenc Agrochemicals India limited have announced a strategic alliance today. The alliance which comes into effect from April 1, 2000 will see the two companies move to the top league of crop protection business in India with a combined market share of 14 per cent resulting from cost and growth synergies, combined distribution strength and a greater market penetration for their key brands. Although internationally Rhone-Poulenc and AgrEvo have merged to from Aventis Cropscience, in India no decision has been taken with regard to the merger between AgrEvo India and Rhone-Poulenc. On the proposed merger of Aventis CropScience and Rhone Poulenc Agro, Aventis member of the executive committee (head of the crop protection business line) Jan Stranges said, "The important thing for us to ensure that Aventis CropScience operates with one face to customers and gains synergies in economies of scale, cost, operational excellence etc. In India, the legal structure is rather complex. We have manufacturing sites, seed sites, a 100 per cent company and a joint venture company and we want take enough time to ensure that we have the most effective legal structure with respect to our partners". The global leader in crop protection business Aventis Cropscience Holding SA, holds a majority stake of 50.1 per cent in Agrevo India Limited while Rhone-Poulenc Agrochemicals (India) Limited is a 100 per cent subsidiary of Aventis Cropscience. The strategic alliance is the first step towards consolidation of Aventis cropscience operations leading to the formal launch of Aventis Cropscience in India. Aventis Cropscience has an estimated 15 per cent market share in global crop protection business with number one position in insecticides (17 per cent market share), number two position in fungicides (15 per cent market share) and number three position in herbicides (13 per cent market share). The Indian operations of Aventis CropScience (the agrochem combine of Rhone-Poulenc and Hoechst) holds tremendous potential and is expected to clock sales of $ 130 million by 2002 (against current levels of $ 80 million), according to Stranges. Stranges also said that Aventis CropScience was in discussions with IBM to develop "co-operation" to supply various IT solutions to the company. This initiative forms part of an overall global strategy to use e-commerce and IT opportunities for business growth. "Our challenge will lie in the ability to transform accumulated intelligence/know-how into immediate and meaningful services for our customers. That way our organisation will be most competitive. We all have the same computer sytems, SAP, but it it how we work with technology, and get people wired. It needs a reactive organisation," he said.
